Charter Hall has emerged as the successful bidder for a QIC-owned Brisbane office tower in a $275 million deal.

Through its Direct Office Fund, the listed fund manager has come out ahead of local and offshore investors to take out 61 Mary Street, which the Queensland funds giant put on the market in August.

The property is fully leased to the Queensland Department of Transport and Main Roads with a 10.4-year weighted average lease term and fixed 4 per cent annual rent reviews.

“The asset provides DOF an opportunity to re-position capital into the core Brisbane CBD backed by a long-term lease to the Queensland government and potential positive rental reversion at the 2023 market rent review,” said Steven Bennett, head of Charter Hall Direct.

The unlisted Charter Hall-run fund has $1.7 billion in assets under management on behalf of its high net worth and SMSF investors.

The 17-level Mary Street tower was held in the QIC Government Office Fund when Knight Frank’s Justin Bond, Ben McGrath and Neil Brookes along with CBRE’s Tom Phipps, Bruce Baker and Flint Davidson were appointed to broker the property.

The tower underwent a $38 million refurbishment works program in 2018 and has one of the most expansive floor plates in the Brisbane CBD, stretching between 1525 and 2030 square metres.

QIC is also looking to divest a much larger piece of commercial real estate in Melbourne in the heart of Collins Street’s ritzy Paris end, worth as much as $2 billion, which is being brokered by JLL and Savills.

It includes the 52-storey tower at 80 Collins Street, once known as Nauru House, along with a surrounding mixed use project now under development, which comprises a 39-storey office tower, along with a 300-room hotel and retail complex through the podium levels of about 5800 square metres.